Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against a network of shipping companies and vessels led by Iraqi-Kittitian businessman Waleed al-Samarra’i, who is accused of smuggling Iranian oil disguised as Iraqi oil. This network has been operating covertly, blending Iranian oil with Iraqi oil and marketing it as solely of Iraqi origin to evade U.S. sanctions. This illicit scheme has reportedly generated hundreds of millions of dollars in revenue for both the Iranian regime and al-Samarra’i.
Secretary of the Treasury Scott Bessent stated, “Iraq cannot become a safe haven for terrorists, which is why the United States is working to counter Iran’s influence in the country. By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies. We remain committed to an oil supply free from Iran and will continue our efforts to disrupt the ongoing attempts by Tehran to evade U.S. sanctions.”
This action builds on previous sanctions by OFAC, including those targeting the network of Salim Ahmed Said in July 2025, which was also involved in the smuggling of blended Iraqi and Iranian oil. The U.S. government views these measures as part of a broader commitment to eliminate Iran’s detrimental influence on Iraq’s economy.
Waleed al-Samarra’i, a dual citizen of Iraq and St. Kitts & Nevis based in the United Arab Emirates, utilizes two UAE-based companies, Babylon Navigation DMCC and Galaxy Oil FZ LLC, to manage operations related to this oil smuggling. His network reportedly generates around $300 million in value annually for both Iran and its partners.
To facilitate the blending of Iranian and Iraqi oil, al-Samarra’i employs several vessels, including the Liberia-flagged ADENA, LILIANA, and others, engaging in ship-to-ship transfers to obscure the origins of the oil. The use of Marshall Islands-based shell companies further complicates tracing the ownership and control of these vessels.
Al-Samarra’i and his companies have been targeted under Executive Order 13902 for their operations in the petroleum sector of the Iranian economy. The sanctions entail the blocking of all property and interests related to the designated individuals and entities within the U.S. and prevent U.S. persons from engaging in transactions with them.
The U.S. remains steadfast in its commitment to countering Iranian influence and ensuring compliance with economic sanctions aimed at curtailing the Iranian regime’s destabilizing activities.
For more updates and a detailed response from Secretary Bessent, a video can be accessed through the Treasury’s official communications.
By targeting Iran’s oil revenue stream, Treasury will further degrade the regime’s ability to carry out attacks against the United States and its allies. We remain committed to an oil supply free from Iran and will continue our efforts to disrupt the ongoing attempts by Tehran to… pic.twitter.com/Es0V7EpL3x
— Treasury Secretary Scott Bessent (@SecScottBessent) September 2, 2025
